529 - 06/07 - Restrictions on the Export of Grain - Ukraine

The Ukrainian Government has set quotas to limit the export of various grains from the country, in order to ensure the sustainability of its own stocks.

The Association reported in 2006 (Bulletin 496) that grain quotas had been set from October to December 2006, and the affect this had on shipping in the area. At that time, grain trading companies were not being issued with export licences, which resulted in delays for many ships which were moored alongside for weeks without any activity. The Club was advised that as a means of reducing their financial loss, shippers were making unreasonable hold-cleanliness requirements, which often resulted in the holds deemed unacceptable by the shippers’ surveyor and State Grain Inspection’s officials.

The Government of Ukraine has declared that from 1st July 2007 there will be limitations on the export of wheat, rye, maize, and barley. No date has been declared for when the grain quotas will end, as this will not be until the State and Regional Reserves have been replenished.

We anticipate a similar situation to that experienced in 2006, and recommend that Member’s with ships fixed to load grain at ports of Ukraine check with their agents and the Club’s correspondent for further advice and updates on the situation.